Rupee Strengthens 5 Paise to 82.46 Against US Dollar on Positive Market Trends

Key Highlights :

1. The rupee rose 5 paise to 82.46 against the US dollar in early trade Friday amid positive trends in equities markets.

2. Falling crude price and inflow of foreign fund in domestic equities markets also provided support to the Indian currency.

3. At the interbank foreign exchange, the domestic unit opened strong at 82.49 and touched the highest level of 82.45. Later, it traded at 82.46, registering a gain of 5 paise over its previous close.

4. According to experts, the Reserve Bank of India’s monetary policy decision Thursday to maintain a pause on interest rates came on expected lines, which boosted the overall sentiment.

5. RBI on Thursday kept the key interest rate unchanged at 6.50 per cent. Meanwhile, investors were concerned over the US Federal Reserve’s interest rate decision to be announced next week.

     The Indian rupee gained 5 paise to 82.46 against the US dollar in early trade on Friday, June 9th, 2023, as positive trends in the domestic equities markets and falling crude prices boosted the local currency. At the interbank foreign exchange, the domestic unit opened strong at 82.49 and touched the highest level of 82.45.

     The Reserve Bank of India’s (RBI) decision to maintain a pause on interest rates on Thursday also provided support to the Indian rupee. RBI kept the key interest rate unchanged at 6.50 per cent. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.04 per cent to 103.38.

     Brent crude futures, the global oil benchmark, fell 0.50 per cent to USD 75.58 per barrel, which further provided support to the rupee. In the domestic equity market, the 30-share BSE Sensex was trading 25.29 points or 0.04 per cent higher at 62,873.93. The broader NSE Nifty advanced 7.45 points or 0.04 per cent to 18,642.00.

     Foreign Institutional Investors (FIIs) were net buyers in the capital markets Thursday, as they purchased shares worth Rs 212.40 crore, according to exchange data. Investors were concerned over the US Federal Reserve’s interest rate decision to be announced next week.

     Mumbai, India’s financial capital, is home to the country’s largest stock exchange, the Bombay Stock Exchange (BSE). It is also one of the most important cities in the country, with a large number of international investors and companies having a presence in the city.

     The rupee’s appreciation against the US dollar is a positive sign for the Indian economy. A stronger rupee will help the country to import goods at lower costs, making them more affordable for consumers. This, in turn, will help to boost the country’s economic growth.

     The appreciation of the rupee against the US dollar is also beneficial for Indian exporters as they will receive more rupees for their goods and services. This will help to increase their profits and expand their businesses.

     Overall, the appreciation of the rupee against the US dollar is a positive sign for the Indian economy and its people. It will help to reduce the cost of imports, boost exports, and improve the country’s economic growth.

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